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Supplements the (A) case.

A medical products distribution company faces strategic opportunities and challenges in a rapidly changing market. Physician Sales and Service (PSS), founded by Patrick Kelly in 1983, operates in 20 states in the United States and intends to expand to 50 states by 1997. By charging premium prices for high-quality service, training its sales representatives intensively, and professionalizing management, PSS has achieved above-average profit margins and, apparently successfully coped with the organizational challenges of rapid geographic concentration. But now, in 1992, PSS must cope with the uncertainties of Bill Clinton's impending election to the U.S. presidency and his promise of sweeping health care reform.

The United States has the best stock markets in the world, many people believe. And the SEC works hard to keep them that way. The U.S. markets are the broadest and fairest anywhere. The average American can trade with little fear of rigged markets or insider dealings. But there is a dark side to this environment of perfectly liquid markets. Unwittingly, the U.S. system nurtures market liquidity at the expense of good governance. The system prevents shareholders from engaging managers in candid dialogues and providing informed oversight and counsel. It encourages capable executives to neglect their fiduciary duties, thus injuring the long-term interests of companies and shareholders. Clever tinkering with insider-trading and disclosure laws cannot get around the basic conflict between market liquidity--which requires transient, arm's length shareholding--and close, honest shareholder-manager relationships.

Describes a systematic approach to selling. The author, a former IBM salesman, believes that selling requires progressing through a series of stages, which culminate in "getting the order." Describes several techniques useful in managing this progression.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Supplements the (A) case.

Martha Radosevich, president of Health Payment Review, a small software start-up, confronts a serious cash-flow problem: Health Payment Review has built a PC-based prototype but has run out of funds to build a commercially acceptable mainframe product. As a stop-gap measure to generate cash, Marcia tries to sell the PC prototype but encounters resistance from conservative buyers. Teaching Purpose: To highlight the challenges of selling and negotiation faced by entrepreneurs, and to help students develop their skills in this area.

However popular comprehensive research and planning may be in some business arenas, they don't suit the fast-moving environment of start-ups. Entrepreneurs must move quickly or opportunity may no longer exist. Theirs is a world of ingenuity, spontaneity, and hustle. Profitable survival requires an edge derived from some combination of a creative idea and a superior capacity for execution. Research on more than 200 thriving ventures reveals four helpful guidelines for aspiring founders. First, effective entrepreneurs screen out unpromising ideas as early as possible, and they accomplish this through judgment and reflection, not gathering lots of data. Next, they assess realistically their financial situation, personal preferences, and goals for the venture. To conserve time and money, successful new founders also minimize the resources they devote to researching ideas. And, unlike managers in big corporations, entrepreneurs don't need all the answers to act.

Provides students with a workable framework for analyzing new ventures. Stresses the importance of matching analytical tasks to the type of venture contemplated.

Cross River makes and sells an innovative, folding baby stroller to the U.S. market. The company has broken even in its first year, selling mainly to small retailers. CEO Deaver Brown urgently wants to expand distribution to national chains and has secured appointments with the buyers of Macy's and K-Mart. What pitch should he make?

Covers the firm's growth from 1956 to 1966. May be used with McKinsey & Co. (A)--1956.

Professional service firms, in law, accounting, advertising, consulting, and so on are ubiquitous and relatively easy to start. Few firms, however, gain scale or permanence. This case explores the reasons behind McKinsey & Co.'s exceptional success in building a prestigious, global institution and the role played by its leader in making it so. May be used with McKinsey & Co. (B)--1966. Describes many interrelated strategic, organizational, and governance issues facing the partners of McKinsey & Co. in 1956.

Entrepreneurship is more popular than ever: courses are full, policymakers emphasize new ventures, managers yearn to go off on their own. Would-be founders often misplace their energies, however. Believing in a "big money" model of entrepreneurship, they spend a lot of time trying to attract investors instead of using wits and hustle to get their ideas off the ground. A study of 100 of the 1989 Inc. "500" list of fastest growing U.S. start-ups attests to the value of bootstrapping. In fact, what it takes to start a business often conflicts with what venture capitalists require. Seven principles are basic for successful start-ups: get operational fast; look for quick break-even, cash-generating projects; offer high-value products or services that can sustain direct personal selling; don't try to hire the crack team; keep growth in check; focus on cash; and cultivate banks early.

Chris Hackett and Val Rayzman have spent six months after graduating from business school exploring the possibility of building a chain of upscale drycleaners. This fragmented industry looked ripe for an innovative new entrant. Chris and Val have researched the industry thoroughly, selected a metropolitan area in which to start, searched for acquisition candidates, and considered the prospect of de novo start-up. They have uncovered only one feasible acquisition candidate. With time and money running out, they feel pressured to decide whether to go through with the acquisition, to start their own store, or to abandon the project. This case is designed to focus on the strategic aspects of entrepreneurial management. May be used to emphasize the importance of understanding industry economics and competitive dynamics. May also be used to examine acquisition as an alternative to start-up.

Supplements Momenta Corp. (B).

Momenta is a one-year-old corporation that has sought to build a distinct culture and identity through a structured process and organized rituals. The company is seeking to be a major player in the highly competitive pen-based computer market and has attracted significant funding and top-quality talent. The case describes the emergence of the corporate culture from the point of view of several key managers. Teaching Objective: To discuss the process and content of corporate culture in a start-up in a rapidly growing and competitive market. Also to discuss the CEO's role in managing highly qualified and talented subordinates. May be used with Momenta Corp. (A).